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Maine Property Division
Property Distribution Laws in Maine
In Maine the courts generally accept a fair and reasonable property division the parties agree to, but if the parties cannot agree, the property is divided by the District Court within the Judgment of Divorce. Maine is an equitable distribution state. Marital property is divided in an equitable fashion. Equitable does not mean equal, but rather what is fair. The court encourages the spouses to reach a settlement on property and debt issues. If they cannot, the court declares the property award.
In a divorce, the court sets apart each spouse's property and divides the marital property in just proportions after considering all relevant factors. When awarding community property, Maine's laws give the court the power to consider the contribution each spouse made to the acquisition of the property, including the contributions of a homemaker. The court considers the value of the property awarded to each spouse, the economic circumstances of the spouses, as well as the desirability of awarding the marital home to the spouse who has custodial care of children.
Factors in Equitable Distribution
According to Section (953)(1) of the Maine Revised Statutes, the court sets aside each spouses separate property and divides the marital property fairly, considering:
Marital Property vs. Separate Property
According to Maine Revised Statutes - Title 19A - Section 953, marital property means all property acquired by either spouse subsequent to the marriage, except:
Valuing and Dividing Property
First, the court classifies assets and liabilities, property and debt, as marital or separate. Then it assigns a monetary value to the marital property and debt. Finally, it distributes the marital assets between the two parties in an equitable fashion.
The Marital Home
In Maine, as in many jurisdictions, the equity in the marital home is often one of the biggest assets the spouses divide. The equity is the market value of the house, less any debts or liens against it. Equity is established by determining what the current market value of the home is at the time of separation. Once the spouses agree to a current market value, any debts associated with the property (mortgage, taxes, home equity loans, etc.) are deducted from the market value to arrive at the equity to be divided. Normally, making this calculation requires a paid real estate appraisal or a real estate agent can prepare a market analysis for free.
From there, couples choose one of three options to divide the equity:
Pensions and Retirement Accounts
In Maine, vested pensions are marital property. A pension vests when all the requirements to receive the pension have been met. Unvested pensions are also marital property. Until the pension has vested, the person under whom the pension is maintained has only an expectancy of interest in the pension.
Several different methods of valuation are used in determining how much a marital asset is worth, depending upon the asset to be valued and the level of agreement between the parties. Courts generally accept the value when the spouses mutually agree on a value of a particular asset. Experts may be retained by the parties or by the courts to determine the value of marital assets if the parties cannot agree. Such experts may include accountants, real estate or business appraisers, or pension valuators. The use of experts adds to the cost of the divorce.
In Maine, the court may include the retirement benefits and plans earned by both spouses as marital assets available for division. Retirement benefits vary greatly but can generally be divided into two groups:
In Maine, if spouses share in each others retirement or pension plan, a Qualified Domestic Relations Order must be completed. A QDRO is a written set of instructions that explains to a plan administrator that two parties are dividing pension benefits. The instructions set forth the terms and conditions of the distribution - how much of the benefits are to be paid to each party, when such benefits can be paid, how such benefits should be paid, etc.
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